Report
Valens Research

GMED - Embedded Expectations Analysis - 2020 10 09

Globus Medical, Inc. (GMED:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 29.2x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about revenue declines, the potential of product launches, and losing market share

Specifically, management may lack confidence in their ability to mitigate revenue and gross profit declines and their decision to maintain their historical pricing strategy. Moreover, they may be concerned about the potential of their spine product development team's product launches and they may be downplaying concerns about losing market share. In addition, they may be exaggerating the attractiveness of their Enabling Technologies products to sales reps and the pull-through growth of robotic deployments
Underlying
Globus Medical Inc Class A

Globus Medical is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company provides a portfolio of technologies that are used to treat musculoskeletal conditions of the spine, extremities and pelvis. The company's product categories are: Musculoskeletal Solutions, consisting of implantable devices, biologics, accessories, and surgical instruments used in spinal, orthopedic and neurosurgical procedures; and Enabling Technologies, consisting of computer-assisted intelligent systems designed to improve a surgeon's capabilities and streamline surgical procedures to improve patient care and reduce radiation exposure for all involved.

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Valens Research
Valens Research

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